A January 11th FINRA disciplinary proceeding found Dennis Allen Hayes (CRD#: 4403550) conducted unauthorized business activity. He sold private securities transactions without disclosing this activity to his employing firm. FINRA investigators found Hayes engaged questionable activity between 2010-2014. During this time, the broker was with Newbridge Securities Corporation (Newbridge).
Hayes’ failure to disclose his outside activity also affected his firm. Newbridge was not aware of the activity. As a result, they were unable to maintain accurate books and records from 2010-2015. Additionally, Hayes did not respond to requests for information and documents from FINRA. He also did not appear for testimony when requested.
The FINRA action affirms Hayes committed the violations and imposes sanctions. Hayes must repay ill-gotten gains and make complete restitution plus interest. He is also responsible for the costs of the hearing.
Investigation details show Hayes worked with nine investors. Eight of these were Newbridge customers. Investments made in five different companies totaled $2.7 million. And, FINRA found the principal agents of the five companies were all Hayes’ family friends. In 2012, the broker’s questionable behavior earned him approx $130,000 in a six month period.
Hayes is no longer registered as a broker. His BrokerCheck record shows he was “permitted to resign” from Newbridge in 2016. The firm made this decision once they became aware of the open FINRA investigation. Also, Hayes had little or no production for the company for one year.
FINRA brokers must observe a high standard of honor and fair principles of practice. Hayes’ unethical behavior violated several key FINRA rules. One, brokers must notify their member firm before engaging in private securities transactions. Two, brokers must keep records of accounts, memos, and correspondence for no less than 3 years. Three, brokers must provide records of their dealings when requested by FINRA.
Contact Our Investment Fraud Lawyers Today
Breaking FINRA rules can result in fraud. If you have been the victim of dishonorable broker practices, Sonn Law Group can help. Contact our experienced investment fraud team for a case review. We will help you receive due compensation for your losses.
Disclaimer: This article contains opinions and NOT statements of fact in any way whatsoever. The information here is general information that should not be taken as legal advice. NO attorney-client relationship is established between you and our attorneys by reading this article. This article is attorney advertising and should not be used as a substitute for legal advice from a qualified lawyer.